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.The country s trading losses have been increasingsteadily over the years from more than A$16 billion in 1993 to morethan A$46 billion in 2003 as shown in Table 2.2.The income flow toUS investors accounted for some 24 per cent of the current accountdeficit with the US.Overall the US is the largest debtor in Australia stotal trade.More than 35 per cent of Australia s trading losses in2003 are accounted for by commercial links with the US.US businessoperations in Australia are well organised in their efforts to lobbygovernment for more tax breaks to improve their profitability andThe US in Australia 35maintain their operations in the country.Companies shop aroundto meet their wish list of  tax breaks, relocation assistance, permits,road and utilities [and] & more controversial requirements of lowor zero income tax (Baragwanath and Howe 2000:9).The weight ofUS business activities in Australia exerts political pressure powerfulenough to change state and federal policies.The business lobby hasbeen instrumental in the deregulation of Australia s financial marketand the introduction of economic rationalism which in turn has beenresponsible for growing inequalities in Australian society.US FREE TRADE AGREEMENTAustralia s satellite status was confirmed with a free trade agreement(FTA) sealed prior to Australia s 2004 federal elections.Labor, the mainopposition party, failed to oppose the FTA fearing the loss of businesssupport and US retribution.Negotiations which began in 2002 werelargely driven by a number of powerful US and Australian lobbygroups.No public debate was held on the issue and the mass mediasupported government efforts by providing extensive coverage tosupporters of the FTA.New Zealand, joined to Australia by the CloseEconomic Relations agreement (CER), has not been a party to thenegotiations because of its opposition to the US invasion of Iraq.BillEnglish the leader of New Zealand s National Party accused Australia sprime minister of waging war in Iraq for a free trade agreement withthe US.The US told NZ s prime minister in 2003 that it was notan ally of the US and unlikely to be considered for an FTA by theBush administration.One of the more controversial aspects is the US attack on Australia sPharmaceutical Benefits Scheme (PBS), which is an importantcomponent of Australia s public health system.Under this scheme thegovernment subsidises the cost of a range of essential pharmaceuticalsby fixing prices and reimbursing patients.The US pharmaceuticalindustry wants the PBS changed so that Australians pay full pricefor their drugs.Pfizer, for example, the maker of Viagra, wants thescheme scrapped so that it can sell Viagra and other drugs at marketprice.This would mean paying an extra A$4 billion a year to theindustry from public and private sources (Lokuge and Denniss 2003).US businesses want better business conditions in Australia includinga reduction of the dividend withholding tax on royalties from 10 percent to zero.Such a concession would reduce Australia s tax revenuesby more than A$200 million yearly.Other US demands focus on36 Little Americathe further deregulation of the labour market, and rights for UScompanies identical to those of Australian firms including the rightto sue government if they fail to get equal treatment.The US is gaining more access for their investors through theelimination of other  means of restricting trade such as rules imposedby Australia s Foreign Investment Review Board and restrictions onforeign ownership of any Australian assets including key companiessuch as Telstra and Qantas, and in sectors such as public schools anduniversities, postal services, water and electricity supply, and rail andcommunication.Hollywood s lobby is keen on lifting local-contentquotas in television and advertising and enforcing stiff copyrightand patent protection for American products such as video, musicrecordings and computer software, including criminal penalties forpirating in such goods.There is fear among Australia s artistic worldthat Australia s culture and entertainment will fall under the controlof US giants, namely Time Warner, Rupert Murdoch s Fox Studio, andthe Motion Picture Association of America.Australians have been told that a free trade agreement withthe United States will lead to a substantial increase in Australia sexports and gross national product.Prime Minister Howard claimsthat a trade agreement is worth A$4 billion to Australia while theUS negotiator Bob Zoellick has up the ante to A$7 billion.Therehave been many warnings that an FTA with the US will not be toAustralia s benefit.ACIL Consulting s major study, commissionedby the government s Rural Industries Research and DevelopmentCorporation (RIRDC), rejected government claims of a A$4 billiongain for Australia and warned of repercussions for Australia s tradingties with Asia particularly in regard to beef and wool exports.Itconcluded that an FTA would cut Australia s Gross Domestic Productby about US$100 million a year by 2010.This raises many questionsabout the motives behind a process which is likely to compromiseAustralia s future.Powerful political and economic groups covet a closer and morepermanent relationship between Australia and the United States [ Pobierz całość w formacie PDF ]